Is The VFX Industry On The Brink Of An AI Revolution?

The VFX industry stands at the cusp of an AI-driven transformation, with advancements in machine learning promising faster, more realistic effects at lower costs. As AI tools evolve, they could redefine creativity, efficiency, and the role of artists in visual storytelling.

Abhishek More, Managing Director & CEO of NSE-listed Digikore Studios, discussed how AI might disrupt the VFX industry and how Digikore Studios is preparing for a transformative shift.

2024 has been the year of AI with everyone talking AI. How do you see AI impacting the VFX industry in 2025 and beyond?

With AI accelerating rapidly, the Visual Effects (VFX) industry stands on the cusp of a transformative—and perhaps disruptive—evolution.  AI is set to change the landscape entirely. In the next 12 to 24 months, AI-driven technologies could radically reshape our workflows, simplifying or even automating some of the most labour-intensive tasks that VFX professionals undertake today. Tasks like Rotoscopy, Paint / Cleanup, Compositing, Set Extension, Beauty Fixes, Crowd Multiplication, Background Creation, Effects and Animation will be partially or fully automated by AI. 

Large production studios have been cautious about using AI for content creation or allowing the use of AI in VFX. Why do you think that is? 

There are a few reasons.  Studios have concerns about copyright issues and quality control. There’s also the fear of AI "cheapening" the artistry behind VFX. But I think that hesitation is temporary. Once AI consistently proves its quality, major studios will realise its competitive advantage and will start embracing it to stay competitive. At that point, we could see a domino effect—if one major player adopts AI, the entire industry may pivot. We’ve seen this before—when major players adopt new technology, others tend to follow. It’s not just about cost-saving but about staying relevant in an evolving landscape. Very recently, Disney has reportedly formed a new group, the Office of Technology Enablement, to explore the use of emerging technologies, including artificial intelligence (AI) and mixed reality to enhance its offerings across film, television and theme park divisions. 

Do you foresee a day when content might be created entirely in AI?

It's certainly possible. AI-generated environments, characters, and even entire scenes could be a reality within the next 12 to 24 months. As technology advances, we might eventually see entire films created within AI, where human input shifts from hands-on work to high-level direction. This shift could be disruptive, but if embraced strategically, it offers endless creative potential.

How is Digikore positioning itself to navigate this shift in the industry?

At Digikore Studios, we’re not just reacting to AI; we’re leaning into it. Our goal is to blend human creativity with AI's strengths. But we’re also expanding our vision beyond VFX. We’ve built a think tank and a disruptive R&D team that is focused on creating technologies of the future. We’re actively investing in AI and future tech that will allow us to grow in ways we couldn’t have imagined a few years ago. This dual focus on VFX and our emerging tech platforms will ensure Digikore’s longevity and allow us to deliver great returns to our investors in the short, medium, and long term.

It has been heard that Digikore is developing some SaaS based B2C AI platforms. Can you tell us more?

Absolutely. One of our most exciting initiatives is the development of our SaaS based B2C AI websites that will empower millions of people Worldwide to create Artificial Intelligence Generated Content (AIGC) for platforms like YouTube, Instagram, and TikTok. Our self serve AI websites will allow everyday creators to produce high-quality content quickly and affordably. By simplifying content creation, we’re opening up new possibilities for millions of people worldwide who want to tell their stories but don’t have the technical skills or the budget for traditional production.

User-generated content is a massive market, and it’s only growing. Estimates suggest that the global UGC market will be worth over $500 billion by 2026 and could exceed $800 billion by 2030. Artificial Intelligence Generated Content (AIGC) Market was valued at USD 1.6 Billion in 2023 and is projected to reach USD 18.7 Billion by 2030, growing at a CAGR of 25.39% during the forecast period 2024-2030. That’s a huge opportunity, and we’re positioning Digikore to be a major player in this space. With our platforms, users can produce everything from short videos and animations to immersive environments, transforming how they create and share content online.

Are there other initiatives Digikore has taken to future-proof its growth?

Yes, last year we’ve established a Branded Content division focused on producing engaging and entertaining Branded Content. This division allows us to diversify our revenue streams and work directly with brands, creating dynamic marketing content. So, even if AI disrupts the VFX industry entirely, we’re positioned to grow in other areas. Branded Content also allows us to apply our expertise to a broader range of industries, creating a steady revenue stream and expanding our reach.

Digikore’s strategy reminds of companies that successfully pivoted during disruptive times, like Netflix, Amazon, and Apple.

Exactly! Companies that anticipate and embrace change tend to thrive. Netflix, Amazon, and Apple all shifted their business models at pivotal moments, and they’re now global leaders. In contrast, companies like Kodak and Nokia, which once held strong positions, failed to foresee technological shifts and ultimately faded. We’ve taken those lessons to heart at Digikore. That’s why we’ve built a solid think tank and a disruptive R&D team dedicated to creating tomorrow’s technologies. Innovation isn’t just about survival; it’s about leading the way into the future. A Pivot is a change in strategy without a change in Vision and most importantly, Pivoting isn’t Plan B; it’s part of the process.

How is Digikore truly committed to innovation and resilience?

At Digikore, we’re not only preparing for the future but actively shaping it. By focusing on both VFX and future platforms, we’re ensuring a sustainable, long-term strategy. We’re blending AI with human creativity to deliver high-quality results, while our B2C platforms and Branded Content division add layers of resilience to our business model. This way, we’re not just prepared for change—we’re driving it.

How does this strategy align with your commitment to investors?

We’re dedicated to creating value for our investors. With our diversified approach—investing in both cutting-edge VFX and emerging markets like AIGC—we’re set to deliver solid returns in the short, medium, and long term. Our focus is on building a sustainable company that not only adapts to the future but also thrives in it. By embracing AI and innovative business models, we’re positioned to generate consistent growth for our stakeholders.